gene muenster, what do you make of this fiasco today? >> well, i mean, the fiasco side, it's not google's fault. i can't remember actually seeing anything quite like this. i think what we're really focused on is just the core business about what's going on. you can look at google.com and youtube, their core parts, that was up 2.5% sequentially. we were expecting that number to be up 7%. on a year over year basis, their core business was up 14% versus 21% in the june quarter. from our perspective, there's definitely some deceleration in the core that we want to hear more about tonight. >> and in terms of this slowdown and missing the estimates, gene, is this a stock that you would buy here? >> not quite yet, maria, although i do think it's overdone at this point. i think, just to be clear, did google actually come out with a statement now from kayla? is that what we just heard? >> we did, yeah. actually, the second paragraph of this release calling it a strong quarter, the first over $14 billion revenue quarter. page saying he's really ex

j gene muenster? >> well, i don't cover microsoft, but i would say it wasn't a big debacle like it was with google. at the end of the day, microsoft is a very different business model, but it's notice to see the tech giants aren't falling apart. >> you know, there are adjusted numbers as well. we want to peel the onion back on this and make sure we're looking at the right numbers. initially the stock looked like it traded down. it is actually trading higher here. john fort has the latest in terms of more headlines out of the microsoft quarter. over to you, john. >> yeah, maria, i'd want to defer to a couple analysts you have on for exact interpretation of these numbers. the headline numbers straight across for revenue is $16.01 billion. of course, you have deferred revenue for the windows upgrade offer, windows 8 presales, et cetera. it comes up to $17.36 billion. i want to be sure we're comparing apples there as far as analyst expectations. >> exactly. it seems to be a lot of adjustments and noise in

plus, we bring in technology analyst gene muenster of piper jaffr jaffray. thanks for spending the time. david, would you be adding to your position or holding off? >> no, it's a buy. it is the only company we own where the problem is they can't make enough of a product the people want. it's really the iphone that matters. the iphone 5 is the highest margin product. by not making enough of them, they missed on the bottom line a little bit. we're going to have to wait until the conference call to really understand what the product wrap-up is in manufacturing for the next quarter, which is probably what the guidance is all about. so, you know, apple makes a ton of money. you can compare them to amazon, which had $14 billion of revenue and lost money. so this is one of the great companies that's growing 20% even now, making a lot of money, and their big problem is they can't make enough phones. >> in terms of nothing knot being able to make enough phones and the manufacturing issues, how much of that is due to what's going on at foxconn, the acrimony, protestin

. >> but jean muenster says apple won't be derailed even as jobs' influence becomes less and less.t me start with you, james. you say apple is not the same company without steve jobs and the more it goes, the more his magic is going to drain out. why? >> they've slowed their innovation engine. he was really a perfectionist and task master. if you look at the last few years, you know, nothing new has really come out from the iphone since 2007. i mean, this device is not much different than, you know, the original device. same thing with the ipad. so what's next, what's new, what's coming? all it takes is a few stumbling points. ios-6 was a stumbling point. >> when steve jobs became sick and when he died, we asked the question many times. the steve jobs magic, everything he was about, was it institutionalized within the blood and guts of apple. you're hearing from other guests he doesn't think it's necessarily so. why do you think so? >> i would take issue with some of this they haven't innovated. if you look at over the last 11 years, they typically come out with a big product once

still bullish gene muenster with piper jaffray. the stock back above 700 but to wait before sending it too much higher to make sure the growth story is still intact. oppenheimer downgrading the stock to market perform, for many of the same reasons but looking at this mobile issue, subsidies for the nexus tablet, impacting advertising profitability and then motorola, i mean that half billion-dollar operating loss, something that people are continuing to be concerned about now that this is entirely a part of google, guys. >> all right, thank you very much, jon. obviously google's ceo, larry page, apologizing for that mistake to led to the company's quarterly results released early. shareholders are worried a lot more about than this error. john meeks' company owns about 84,000 shares of google, about $64 million. based on what you heard, not just knee-jerk reaction but looking through the numbers is this a stock you'd be selling or holding on to? >> first of all we own the stock is at about $4.50 and have low turnover so we hold stoc